Importers expect end to double-handling charges as Lagos-Ibadan cargo train resumes

CLEARING agents have said that more importers will now patronize the Lagos-Ibadan cargo trains following its relaunch by the Lagos Port container terminal operator, APM Terminals in collaboration with the Nigerian Railway Corporation (NRC).

Speaking exclusively with the Nigerian Tribune, a former acting National President of the Association of Nigerian Licensed Customs Agents (ANLCA), Dr. Kayode Farinto explained that a major reason that many importers shunned the Lagos-Ibadan cargo trains in the past was due to double-handling charges slammed on cargoes destined for rail evacuation.

According to Farinto, “Whoever brought about the idea of the terminal operator also operating the rail evacuation of cargoes must be given a thumbs up because this idea will definitely erase the double-handling charges that was killing rail evacuation from the Lagos port in the past.

“Now, we have the same container terminal operator also operating the rail movement of cargoes out of Lagos port. Definitely, we don’t expect them to slam double-handling charges on hinterland bound cargoes anymore.

“Double-handling charges is one of the major issues that is killing trade in Nigeria. I have expected the Federal Government to set up a committee to look into double-handling charges issues in our port system.

“When you have situations where functions overlap, double-handling charges comes in. Before, we pay the terminal operators for handling our cargoes and also pay the Nigerian Railway Corporation (NRC) for handling same cargoes. It was killing and that was why many shunned the rail evacuation of cargoes.

“Now, it is the same company that handles the cargoes inside the port terminal that is now also handling the rail evacuation, we don’t expect to see double-handling charges anymore.

“Importers will prefer the rail evacuation of cargoes going forward because it is faster, less stressful, and no issues of road congestion. I expect more importers to rush for rail evacuation of cargoes now that double-handling charges is off the bill.

“Importers want to see how the rail evacuation is marketed. They want to see the billings. Once double-handling charges is off the bill, more cargoes will leave by rail. It is a very straightforward arrangement.”

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Also speaking, another clearing agent, Henry Alumona expressed delight at the Lagos-Ibadan cargo train relaunch, stating that he expects the terminal operator to convince more importers to leave by rail since rail is now part of the terminal operators’ responsibilities.

“It is good that APM Terminals has been handed the role of handling rail evacuation of cargoes. I don’t expect to see the kind of situation that played out in the past when rail evacuation was being handled by other companies.

“Then, there was always issues over who collects what. It was always a case of disagreement over money. Now that it is the terminal operator that will be handling both rail and terminal handling responsibilities, I don’t expect functions to overlap anymore.”